Despite its growing popularity, even the Polkadot price is not immune to the wider cryptocurrency weakness. So, is DOT now a buy at this price?
The Polkadot price is last trading at $15.3800, down -$0.4333 (-2.66%).
Polkadot’s progression shows no signs of slowing up. The sharded multichain network is fast becoming the first choice for developers drawn to its unique features. So much so that it’s almost impossible to find a news article that doesn’t refer to Polkadot as an ‘Ethereum killer’ (this one included).
The plaudits are hardly surprising, considering founder Dr Gavin Wood was a co-founder and former Chief Technology Officer of the Ethereum project.
News flow has been extremely positive and should be supportive of the Polkadot price. This month, the $1 billion Venture Capital firm, Masters Ventures, launched a $30 million Polkadot-focused fund. Additionally, yesterday, DeFi pioneer Nexo revealed it would become the latest provider to support DOT.
DOT Technical Outlook
The daily chart illustrates the acceleration of selling after DOT lost the support of the rising trend line at $21.5000. The resulting cascade lower exceeded the depths of the May 23rd crash, with DOT trading as low as $13.0000 before finding support.
Yesterday’s low print has resulted in forming a horizontal support line, aligned with the 16th of January low at $12.6200. I would now consider this a crucial level of support. Additional support is not seen until $10.5000, followed by $7.4500, more than 50% below the current price.
There is an obvious dilemma. On the one hand, ‘fundamentals’ indicate the Polkadot price should continue to do well. However, the flip side is that DOT will follow the general direction of the market. And until some strength returns to Bitcoin and Ethereum, Polkadot will remain vulnerable to the downside.
In my opinion, DOT offers a strong upside play on the first sign of confidence returning to Cryptocurrencies. Nonetheless, I would advocate waiting until a clearer signal emerges before buying this dip.